MAM

×

Rural is bigger than Urban India: Kashyap

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2017/09/14/Mindshare.jpg?itok=Rh-DK1Lj

MUMBAI: Rural India is now bigger than urban India, triggered by growth in the hinterland and rise in smaller towns.

“Indian rural economy is a $1 trillion economy. Hence no company can now afford to ignore rural India. Whole rural India is moving from poverty to prosperity. In times to come, there will be a huge upsurge of demand in rural India in durables, consumer electronics etc. In past two years, the urban growth has been by 10 per cent while that of rural has been by 30 per cent. Rural GDP now equals urban GDP,” Mart founder and CEO Kashyap said, while speaking at Mindshare Brand Equity Compass here today.

Marketers are waiting to tap into this expanding market, particularly those dealing with consumer durables.

“Small towns are deeply linked to rural areas. Rural India is transforming from agricultural economy to non-farming economy, from non-farming economy to services economy. Service is 65 per cent of India’s GDP,” said Kashyap.

Government schemes have been the growth drivers for rural India. “In the last 3-4 years, the government‘s spend on the various schemes has increased by 460 per cent. There is a special focus on education,” Kashyap added.

Consults CEO Haish Bijoor believes rural is the new buzz word. “You can’t ignore them no matter where you are and what you do. Rural market embraces every category today. There is a gradual, clear, perceptible shift of power from Urban to rural. Rural is no smaller. It is bigger than urban today. Rural market is completely dispersed. Marketers have to develop the understanding of customers. There has been a pomposity surrounding our marketing lives. Bigger cities are more homogenous than smaller towns.”

Youth is another main reason for rural India’s growth. “They have been going to nearby towns for higher education. It’s they who bring urban aspirations to life and are users of products that are used by urban India,” Kashyap averred.

Service, rather than brand, loyalty is the new reality. Said Bijoor, “Most emerging markets are peopled by the young. 22.7 per cent of rural children go to private school while 50 per cent of urban children go to private. Rural India comprises of more than 75 per cent of the people of the country so this shows how many people are getting education from private school in rural India. But at the same time young are difficult to understand.”

Marketers need to understand the local eco-system and develop appropriate product. They should develop solution through a community co-creation process.

Bijoor said that there are three types of consumers in rural India: one who buys everything for self; second are those who buy 70 per cent for self and re-sell 30 per cent in villages; and the third set of people are the ones who sell 100 per cent.

“The last two are the future of rural reach, distribution and penetration,” Bijoor concluded.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/26/boat.jpg?itok=Jyvwdpfx
Kunal Rawal's Winter/Festive'19 collection "CONFLUENCE" unveiled at the 20th year of Lakme India Fashion Week

The eccentricity of the new collection is inspired from the thought of versatility and new age grooms. Merging tradition with millennial, Kunal presents an exciting design solution to the men’s wear wardrobe!

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/26/Economic_Slowdown.jpg?itok=AIyUJmCV
Economic slowdown: Smart marketers will not make cuts in advertising

As India battles, probably, the worst of its economic crisis since independence, a lot of industries are battling to keep their businesses going but it seems like the advertising industry is immune from the ill-effects. The marketing industry and the advertisers are seeing the slowdown as a need to...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/mumbaui.jpg?itok=jjEVG89d
How brands celebrated Janmashatami on social media

MUMBAI: The whole country celebrated the festival of Janmashatami on Saturday with much fanfare. From dahi handi competitions on streets to intimate celebrations at homes, people revered Lord Krishna’s birth. Some of the brands took to social media to mark the special day. Here are a few creatives...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/11.jpg?itok=IG4JPpZ3
My11Circle has a great innings with Sourav Ganguly onboard; gives cricket fans the chance of a lifetime to engage and play with their favorite player

MUMBAI: With an objective to give every cricket fan the best experience of fantasy cricket in India, My11Circle, one of India’s best fantasy cricket platforms, recently brought ex-cricketer and former Indian team Captain Sourav Ganguly onboard as itsbrand ambassador.Proving to be a valuable...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/bkt.jpg?itok=049-UwPD
BKT becomes official global partner of LaLiga with 3-year agreement

MUMBAI: BKT and LaLiga have entered into an agreement that will see BKT become “Official Global Partner of LaLiga”. The partnership takes immediate effect and will run for three years until the end of the 2021/2022 season. “LaLiga stands for excellence and is a synonym for football with a capital ‘...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/ZOYA.jpg?itok=MKB4Lfyr
ZOYA - A Tata Product introduces "Rhapsodie"

ZOYA from the House of Tata, presents Rhapsodie, an artistic collection characterized by delicate fluid designs and fascinating rare stones. It is inspired by the celebrated techniques of haute cuisine, reimagined into enticing forms of haute joaillerie.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/India_Circus.jpg?itok=znC5VUWP
Contemporary-chic lifestyle brand "India Circus" opens 1st store in Kolkata

The launch party of India Circus by Krsnaa Mehta, a Godrej Venture was hosted last evening by Mr. Swarup Dutta, in the presence of Mr. Krsnaa Mehta, Founder & Executive Director, India Circus, a Godrej Venture. Through the outstanding success of this high-octane evening, India Circus reaffirmed...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/parle.jpg?itok=8YGT5Xuc
No job losses yet, Parle senior category head Mayank Shah clarifies

MUMBAI: Parle Products Pvt Ltd, a leading Indian biscuit maker was in controversy because of the news spread on the layoff of over 10,000 workers due to the slowing economic growth and falling demand in the rural heartland which could cause production cuts.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/kinetic.jpg?itok=omfnq75t
Kinetic India powers Tata CLiQ Electronics campaign

MUMBAI: Kinetic Worldwide is a leading global player in the out-of-home (OOH) media industry and has successfully executed creative campaigns for a number of its clientele. Yet another success story is the Tata CLiQ Electronics campaign.

MAM Media and Advertising Ad Campaigns

Sign up for our Newsletter

subscribe for latest stories